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Is a supply always zero rated when exporting?

VAT place of supply rules when delivery address is abroad but customer UK based

Didn't find your answer?

I hope - a simple question.

A UK company supplies an EU customer with goods to a  UK delivery address. The place of supply is UK to UK so VAT is charged despite the customer being in the EU.

A UK customer supplies a UK customer with a delivery address overseas (non EU) - so the reverse of the situation above. This is an export (despite the customer being in the UK) so the supply should be zero rated - am I right?



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By paul.benny
18th Oct 2019 14:47

Yes. It's the ship-to address that determines the VAT rate.

As I'm sure you know, your customer must be VAT-registered in the destination country, there is specific wording which should appear on the invoice and you need evidence of removal of the goods from UK.

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Replying to paul.benny:
By lionofludesch
18th Oct 2019 15:39

You don't have to be registered for VAT if the destination isn't in the EU.

But - don't worry about that. It'll all change in a fortnight anyway.

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By PeterCoekin
18th Oct 2019 18:24

Thank you both, that was really helpful.

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